Is Unique Fabricating, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Unique Fabricating, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, given its P/E ratio of 0.00, an EV to EBIT of -19.26, and an EV to EBITDA of 22.11, which are concerning metrics compared to its peers. In contrast, REE Automotive Ltd. has a P/E of -0.2335 and an EV to EBITDA of 0.1857, while AYRO, Inc. shows an EV to EBITDA of 0.4163, both suggesting more favorable valuations in the sector.
The company's performance has been dismal, with stock returns of -100% over the past year, significantly underperforming the S&P 500, which returned 17.14% in the same period. This stark contrast reinforces the notion that Unique Fabricating, Inc. is not only overvalued but also struggling to maintain any market presence.